Amid 23XI-FRM dispute, NASCAR faces trial over "LetsGoBrandon" crypto lawsuit per reports

There appears to be no rest for NASCAR's legal team. A lawsuit against NASCAR from the CEO of the company behind the "Let's Go Brandon" (LGB) cryptocurrency is set to go to trial this week, according to Fox Sports' Bob Pockrass.

James Koutoulas, CEO of Typhon Capital Management, has alleged that NASCAR revoked a sponsorship deal for LGB Coin. Koutoulas, who is represented by law firm Freedman Normand Friedland, initially alleged defamation, breach of contract, and promissory estoppel and sought $571 million in damages.

Bob Pockrass shared an update on X, writing:

"In other NASCAR legal news, trial in Florida could begin this week on LetsGoBrandon's James Koutoulas' allegation he lost $$ when NASCAR rescinded sponsorship approval. NASCAR, among its arguments, says b/c he didn't buy any coin after initial sponsorship OK, he didn't lose $$."

Bob Pockrass

@bobpockrass

In other NASCAR legal news, trial in Florida could begin this week on LetsGoBrandon's James Koutoulas allegation he lost $$ when NASCAR rescinded sponsorship approval. NASCAR, among its arguments, says b/c he didn't buy any coin after initial sponsorship OK, he didn't lose $$.

In a previous Miami state court hearing of the case, Judge Lisa Walsh dismissed the defamation and breach of contract claims but allowed the promissory estoppel claim to proceed. The trial will now consider whether NASCAR's actions caused Koutoulas financial harm.

Meanwhile, 23XI Racing (co-owned by Michael Jordan and Denny Hamlin) and Front Row Motorsports are in the midst of an antitrust lawsuit against NASCAR that is set to go to trial this December. The teams have accused that NASCAR's charter system and revenue-sharing model are monopolistic and unfairly favor established teams.

The sanctioning body also filed a countersuit to the original October 2024 lawsuit in March this year. It blamed the teams for attempting to coerce and extort better financial terms through collective action.

How the LGBcoin lawsuit against NASCAR came to be

In 2021, NASCAR Xfinity Series driver Brandon Brown announced a sponsorship deal with LGBcoin, the cryptocurrency, which is linked to the "Let's Go Brandon" slogan. The phrase originated from a misinterpretation during Brown's victory interview at Talladega Superspeedway. The chant was intended as a political statement against US President Joe Biden.

Brown's team, Brandonbilt Motorsports, claimed they received written approval from NASCAR for the sponsorship and car design in December 2021. However, after the public announcement, NASCAR stated that the approval was premature and that the deal required further review.

The governing body later denied the sponsorship, citing the controversial nature of the "Let's Go Brandon" phrase:

"I think, unfortunately, it speaks to the state of where we are as a country. We do not want to associate ourselves with politics, the left or the right. We obviously have and we’ve always had, as a sport, tremendous respect for the office of the president no matter who is sitting," President Steve Phelps said (via CNN in 2022).

Now, James Koutoulas is suing NASCAR over claims of false promises to the LGBCoin cryptocurrency founders.